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Blue Owl Credit Income Corp. Bolsters Liquidity With $1.3B in Financing Activity

By Mari Nicholson

Blue Owl Credit Income Corp. Bolsters Liquidity With $1.3B in Financing Activity

Blue Owl Credit Income Corp., a non-traded business development company managed by Blue Owl Capital, announced two major financing initiatives collectively providing the firm with $1.3 billion in additional capital to support its middle-market lending operations. The transactions include an $800 million collateralized loan obligation and a $500 million secured credit facility.

The company, also known as OCIC, finalized an $800 million term debt securitization, structured as a CLO transaction and executed through a consolidated subsidiary, Owl Rock CLO XXIV LLC, i.e., the issuer.

The CLO is backed by a portfolio of middle-market loans and consists of several classes of secured notes and loans:

  • Class A notes: $383 million, rated AAA(sf), bearing interest at three-month term secured overnight financing rate plus 1.39%;
  • Class A-L loans: $53 million, also bearing interest at three-month term SOFR plus 1.39%;
  • Class B notes: $108 million, rated AA(sf), bearing interest at three-month term SOFR plus 1.7%; and
  • Class C notes: $56 million, rated A(sf), bearing interest at three-month term SOFR plus 1.9%.

The debt is scheduled to mature in January 2038. Blue Owl Credit Advisors LLC will serve as the collateral manager, directing the purchase of additional loans through a reinvestment period ending in January 2030.

Concurrently with the debt issuance, the issuer issued $200.95 million in preferred shares. The company purchased 100% of these shares, acting as the “retention holder” to satisfy U.S. and European Union risk-retention regulations. As part of the initial closing, the company contributed or sold approximately $766 million in funded par amount of middle-market loans to seed the Issuer’s portfolio.

In a separate move to enhance revolving liquidity, OCIC’s newly formed subsidiary, Core Income Funding XI LLC, entered into a secured credit facility up to $500 million, with Bank of America N.A. serving as administrative agent.

Regarding the loan’s interest rate, U.S. dollar draws are benchmarked to term SOFR or daily SOFR plus a margin of 1.35%. The facility features a two-year revolving period and a stated maturity of March 5, 2029. Also, the loan is secured by a perfected first-priority security interest in the assets of Core Income Funding XI.

The BDC intends to use the proceeds from both the CLO and the credit facility for general corporate purposes and to finance the acquisition of eligible middle-market assets.

Previously reported by AltsWire, OCIC, along with Blue Owl Technology Income Corp. – another non-traded BDC – fulfilled unusually significant tender offers in the fourth quarter of 2025.

The tender activity followed the broader surge in investor redemption requests among larger net asset value BDCs, with Q4 2025 redemptions rising more than 200% from the prior quarter, according to investment banking firm Robert A. Stanger & Company Inc.

OCIC reported that its most recent quarterly share repurchase offer was significantly oversubscribed. Originally targeting a maximum buyback of approximately $966.45 million – representing 5% of its aggregate NAV as of Sept. 30, 2025 – the firm ultimately accepted a higher volume of tenders through Dec. 31, satisfying 100% of repurchase requests. The total repurchase value was approximately $1.01 billion, with the aggregate purchase representing 5.2% of the company’s aggregate shares as of Sept. 30. The final redemption amount reflected a 217% increase compared with the company’s tender offer at the end of Q3 2025.

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